Article 3 — Inclusionary Housing Program

(a) Purpose. The purpose of this article is to provide a mechanism and procedures for implementing inclusionary housing as part of new residential development.

(b) Intent.

(1) Ensure the development and availability of decent, affordable housing to a broad range of households with varying income levels throughout the City.

• (2) Promote the City's goal to add affordable dwelling units to the City's housing stock.

• (3) Ensure the long-term affordability of dwelling units and availability for eligible households in years to come.

• (4) Ensure that the private sector, in addition to public sector, participates in the provision of affordable housing for workers within the City of Thousand Oaks.

(5) Ensure that affordable housing will be dispersed throughout the City and each residential development, and not segregated from market-rate housing, by adopting the inclusionary housing requirement for each applicable residential development.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 3, Ord. 1543-NS, eff. October 8, 2010, and § 3, Ord. 1719NS, eff. November 24, 2023)

Unless otherwise exempted pursuant to Section 9-10.303, all residential developments of ten (10) or more residential units shall be subject to the requirements of this article, and shall be subject to the following requirements:

(a) Construction of Rental Inclusionary Units. Apartment developments shall provide at least ten (10%) percent of the total dwelling units as low-income inclusionary units.

(b) Construction of Ownership Inclusionary Units. Condominium/Townhome developments shall provide at least ten (10%) percent of the total dwelling units as moderate-income inclusionary units. Detached single-family home developments shall provide at least five (5%) percent of the total dwelling units as moderate-income inclusionary units.

(c) For the purposes of calculating the number of inclusionary units required, any additional dwelling units authorized as a density bonus under the City Density Bonus Ordinance or State law will not be counted in determining the required number of inclusionary units.

(d) Any fractional number of inclusionary units required in a residential development, shall be provided by payment of an in-lieu fee in the amount determined pursuant to Section 9-10.306 of this Chapter.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 4, Ord. 1543-NS, eff. October 8, 2010, and § 4, Ord. 1719NS, eff. November 24, 2023)

The following residential developments are exempt from the provisions of this article:

(a) A residential development of nine (9) or fewer dwelling units.

(b) A vesting tentative tract map application that has been determined to be complete prior to the effective date of the ordinance adopting this article.

(c) A residential development that has received its discretionary approvals from the City prior to the effective date of the ordinance adopting this chapter.

(d) A residential development which is subject to the terms of a development agreement approved prior to the effective date of the ordinance adopting this article, but only to the extent that the development agreement precludes application of the provisions herein.

(e) The reconstruction of any dwelling units that has been destroyed by fire, flood, earthquake or other act of nature provided that the reconstruction of the project does not result in an increase in the number of existing units by ten (10) or more.

(f) The reconstruction of any dwelling units that has been destroyed by fire, flood, earthquake or other act of nature provided that the reconstruction of the project does not result in an increase in the number of existing units by six (6)

or more. (§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 5, Ord. 1719-NS, eff. November 24, 2023)

(a) Preliminary Inclusionary Housing Plan. Any applicant proposing to satisfy the requirements of this article by any means other than payment of an in-lieu fee shall be required to submit a Preliminary Inclusionary Housing Plan. The Preliminary Inclusionary Housing Plan shall be submitted at the time application is made to the Community Development Department for discretionary approval of the residential development. The Preliminary Inclusionary Housing Plan shall include the following information, as well as any other information required by the Community Development Director to evaluate the proposal:

(1) A site plan and floor plan that depicts the location of all proposed market-rate and inclusionary units. For multistory residential projects, each floor containing inclusionary units shall be depicted separately.

(2) The Preliminary Inclusionary Housing Plan shall include a unit count of all proposed units, market-rate and inclusionary, a mathematical calculation that demonstrates compliance with this article, the square footage and number of bedrooms and bathrooms for each inclusionary unit, and the income levels to which each inclusionary unit will be made affordable.

(3) A list of any requested incentives pursuant to Section 9-10.307.

(4) Upon submittal, the Community Development Director or designee shall determine if the Preliminary Inclusionary Housing Plan is complete and conforms to the provisions of this article. If an Inclusionary Housing Plan is required, no application for a residential development may be deemed complete unless a Preliminary Inclusionary Housing Plan has been determined to be complete.

(b) Final Inclusionary Housing Plan. No building permits for a residential development shall be issued until a Final Inclusionary Housing Plan demonstrating compliance with this article has been approved by the Community Development Department.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 6, Ord. 1719-NS, eff. November 24, 2023)

Where inclusionary units are provided in a project, the City and applicant shall enter into an Affordable Housing Agreement to document and guarantee the provision of the required affordable housing units. The Affordable Housing Agreement shall incorporate the approved Inclusionary Housing Plan. Inclusionary units shall also be subject to the following minimum standards.

(a) Design. Inclusionary units shall be comparable in design to market-rate units, with comparable infrastructure (including sewer, water, and other utilities), construction quality, and exterior design. The bedroom and bathroom mix for inclusionary units shall be proportional to the bedroom and bathroom mix in corresponding market-rate units. Inclusionary units shall have same exterior finishes and features as the market-rate units. The Inclusionary units shall have the same type or quality of appliances, fixtures, and finishes as the market rate units in the development.

(b) Location. Inclusionary units shall be equally distributed throughout a residential development and not clustered in a particular area of the development. Inclusionary units within developments that share a common entrance shall not have separate entrances for market-rate and inclusionary units.

(c) Timing of construction. Inclusionary units shall be constructed and occupied concurrently with or prior to the construction and occupancy of market-rate units. In phased developments, inclusionary units may be constructed and occupied in proportion to the number of dwelling units in each phase of the development.

(d) Access to common amenities. Residents of inclusionary units shall have the same rights and access to common amenities in the development, such as parking, open space, storage, and recreational space, as residents in market-rate

units.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 7, Ord. 1719-NS, eff. November 24, 2023)

(a) In-lieu fees. The requirements of this article may be satisfied by paying a fee, in-lieu of constructing inclusionary units. The fee set by City Council pursuant to Section 9-10.306 shall be charged per leasable or saleable square foot of all units in a project. Any money paid pursuant to this subsection shall be deposited in the Affordable Housing Trust Fund as provided in Article 2.

• (1) The payment of in-lieu fees may be used to satisfy the inclusionary housing requirement for the following residential developments:

• (i) Any fractional number of inclusionary units required in a residential development.

• (ii) Ownership developments.

• (iii) Rental developments with 20 or fewer dwelling units.

• (iv) Rental developments with more than 20 dwelling units, provided the City Council finds that constructing the required inclusionary units on site would be an extreme hardship, based on factors such as project size, site constraints, and/or excessively large affordability gaps. One way this can be achieved is for the developer to

• demonstrate that the imposition of the affordable housing production requirement would violate the California and/or United States Constitutions.

• (2) In-lieu fees shall be paid according to a fee schedule adopted by the City Council and will be adjusted annually based on the percentage change in new home prices and average apartment rent increases in Ventura County.

• (3) In-lieu fees shall be paid prior to the issuance of the first building permit for the development. For phased developments, the developer may pay a pro rata share of the in-lieu fee concurrently with the issuance of building permits for each development phase.

• (b) Production of Rental Inclusionary Units as part of an Ownership Housing development.

• (1) Developers of ownership housing developments are allowed to fulfill the development's Inclusionary Housing obligations with rental Inclusionary Units on a site that meets one of the following criteria:

• (i) A separate Inclusionary Housing parcel that is created within the development site for the market rate residential development; or

• (ii) A site that is located within one mile of the development site for the market rate residential development.

• (2) City Council shall be the approval authority for the following:

• (i) Development location for the off-site inclusionary production option.

• (ii) On-site parcel option for the size and location within the original development site for the market rate ownership residential development.

• (3) Rental Inclusionary Unit requirements.

• (i) Fifteen (15%) percent applied to the total number of ownership housing and apartment units being developed.

• (ii) Low-income level, unless developer volunteers to fulfill the requirement with very low-income units.

• (iii) Bedroom mix is not required to match the unit mix provided in the market rate ownership housing development.

• (iv) Notwithstanding subdivision (3)(iii) above, the off-site inclusionary units shall meet the following requirements:

1. No more than fifteen (15%) percent of the off-site inclusionary units shall be studios.

2. At least forty (40%) percent of the off-site inclusionary units shall include two (2) or more bedrooms.

• (4) A market-rate developer may enter into an agreement with an affordable housing developer to construct, own and operate the offsite inclusionary units required to fulfill the inclusionary housing requirement, provided:

• (i) The affordable housing developer has relevant recent experience and is approved by the City.

• (ii) The affordable housing developer does not request any financial assistance from the City.

• (iii) The affordable housing developer may apply to use the California Government Code Sections 65915-65918

• (Section 65915) density bonus and the statutorily established number of incentives or concessions.

• (c) Land Dedication. At the discretion of the City Council, the inclusionary housing requirement may be satisfied by the dedication of land as follows:

• (1) The land shall be conveyed to the City at no cost.

• (2) Payment in full of all property taxes and special taxes shall be made when the proposal for land dedication is submitted, and again prior to conveyance of the land to the City.

• (3) The inclusionary units constructed on the land shall be set at fifteen (15%) percent of the rental units and affordable to eligible very low-income households.

• (4) Location of the units:

• (i) The land to be dedicated shall be located within one (1) mile of the market-rate development that is subject to the inclusionary housing requirement, unless the units are located within a moderate or higher resource area as defined by the California Tax Credit Allocation Committee (CTCAC) Opportunities Mapping.

• (ii) The inclusionary units constructed on the land to be dedicated shall not create an overconcentration of deedrestricted affordable dwelling units in any specific neighborhood, unless the units are located within a moderate or higher resource area as defined by the California Tax Credit Allocation Committee (TCAC) Opportunities Mapping.

• (iii) Overconcentration is defined as more than fifty (50) deed-restricted dwelling units for eligible very low-or low-income within one-fourth (1/4) mile of the land, or more than two hundred (200) deed restricted dwelling units for eligible very low-or low-income households within one-half (1/2) mile of the land.

• (5) Upon submittal of a proposal for land dedication, evidence shall be provided that:

• (i) The developer has control of the land to be dedicated.

• (ii) The land to be dedicated is free of any liens.

• (iii) Any encumbrances or easements that adversely impact the property's title must be disclosed and factored into the estimated value of the interests proposed to be conveyed to the City.

• (iv) The land cannot contain any hazardous materials at the time the land dedication proposal is submitted:

1. The developer has disclosed whether any hazardous materials were previously contained on the site.

2. If any hazardous materials were previously remediated on the site, the developer has provided evidence that cleanup was performed in accordance with applicable law.

• (v) The land has not been improved with any residential use for at least five (5) years prior to the submission of the land dedication proposal.

• (vi) The land's existing General Plan and Zoning allows for residential use at a density sufficient to permit the development of the required number of inclusionary units.

• (vii) The land is suitable in terms of size, configuration, and physical characteristics to allow cost-efficient development of the required number of inclusionary units.

• (viii) The land is fully served by the necessary infrastructure to support the required number of inclusionary units prior to the conveyance to the City.

• (6) The developer shall submit all necessary information to evaluate compliance with the requirements of this Chapter, including:

• (i) Conceptual site plan and narrative description of a project that could be developed on the property.

• (ii) An identification of the income and affordability restrictions proposed to be imposed.

• (iii) A pro forma analysis that qualifies any financial gap associated with the identified development scope and describes how this financial gap will be filled.

(iv) If a Section 65915 density bonus will be required, an identification of the terms of the requested density bonus; incentives and concessions; and development standards waivers.

(7) City staff shall review land dedication proposals prior to consideration by the decision-making authority, to ensure they meet the requirements of this Section.

(8) The City shall re-convey dedicated properties to developers with experience developing affordable apartment developments targeted to very low-income households.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 8, Ord. 1719-NS, eff. November 24, 2023)

Applicants for residential developments who elect to satisfy the requirements of this article by constructing the requisite number of inclusionary units may request a regulatory incentive consistent with Government Code Section 65915(d)(2) regardless of whether the project includes a Density Bonus.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 9, Ord. 1719-NS, eff. November 24, 2023)

In addition to the requirements of this article, inclusionary units shall be subject to the requirements of Article 6 of this chapter (Compliance Requirements).

(a) Term of Affordability. Inclusionary units which are individually sold shall remain affordable for a cumulative period of forty-five (45) years from the date of initial occupancy. Inclusionary units which are rented shall remain affordable for as long as the property is developed with a residential use, but not less than a fifty-five (55) year period from the date of initial occupancy.

(§ 1, Ord. 1506-NS, eff. October 9, 2008, as amended by § 10, Ord. 1719-NS, eff. November 24, 2023)